Topline
The London Stock Exchange-owned global index publisher FTSE Russell will remove Chinese oil and natural gas company CNOOC from its global and China indexes of top companies, the index publisher announced on Friday, a move that is a direct impact of the Trump administration’s ban on U.S. investments into blacklisted Chinese firms.
Key Facts
The Hong Kong-listed company will be removed from FTSE’s global indexes and the FTSE China 50 Index on January 27, Reuters reported
While the announcement came after trading hours in Hong Kong, CNOOC’s stock on the HKSE slid 5.5% during the day’s trade.
Key Background
In November, former U.S. President Donald Trump signed an executive order that prohibited Americans from investing in companies that the U.S. government deemed supporters of China’s military, intelligence and security services. The ban on the trading of these companies’ shares went into effect on January 11 while existing investors have until November to divest their holdings. During its final week in power, the Trump administration added CNOOC and phone maker Xiaomi to its trade blacklist. After a series of flip-flops, the New York Stock Exchange moved to delist U.S.-traded shares of China Telecom, China Mobile and China Unicom to comply with the order.
Further Reading
FTSE Russell deletes CNOOC from global and China indexes due to U.S. ban (Reuters)
NYSE Reverses Course Again, Will Delist Three Chinese Telcos Flagged By Trump Administration (Forbes)
